of the bretton woods system so post world war two the us dollar was declared the world's reserve currency but for international trade it was backed by gold and because you were having to settle your balance of trade via the central banks it was convenient in one thousand nine hundred five in one nine hundred fifty one nine hundred sixty four in germany to store gold in new york at the new york fed because if they had a trade imbalance with america they would just settle there through the bank or settle it with the u.k. via the bag but now since nine hundred seventy one it's really bad there's no point for them to really store so much gold in the central banks so now they say to this end now that they have all the storage they say it's just a storage plan remember the bundesbank is planning a phased relocation of three hundred tons of gold from new york to frankfurt as well as an additional three hundred seventy four tons from paris to frankfurt by twenty twenty this means they're taking their percentage of their gold held in france to zero and they're reducing their holdings in new york by twenty percent

because right now they have fifteen hundred tons there so over the next seven years they can bring forty tons a year back now since two thousand and nine central banks in buying gold reversing a forty year trend and i would expect germany now not only to be repatriating gold but to be actively buying gold just like russia is actively buying gold china is actively buying gold germany will be actively buying gold as well and as it becomes known that this gold is now we're supposed to be expecting buying them gold that's how we get to ten thousand dollars an ounce on golden pond in a dollars an ounce on sober now this is a huge political statement as well to ask for your gold back in light of the fact that all our international trade all our international currencies are based on faith in that system so the fact that germany is asking for so much gold as the financial times says the largest ever movement of gold in world. story and then so

the financial times gives a hint of the reason why germany would make such a grand request to spank weighs bully on against public pressure so i want to look back and how did this public pressure come about and indeed i could tell you why it came about here is the man no should almost warned you about the one that would cause world war three. percent almost much ado let us go this is world war three it's a currency war we've been calling this for ten years really since we started on our podcast ten years ago we said this is what this century is going to be defined as a constant war by gold and silver and gold was two hundred fifty dollars an ounce at that time now it's sixteen seventeen dollars an ounce and we've taken on an audience with us as the most. outstanding performing asset for the decade so let's roll back to what how this caused man how max causes in case you were not aware this is a film called brown's bottom and in it we made this in two thousand and eight and

on march seventeenth two thousand and eight that was a monday max and i had an appointment with the biggest bank with the head of their gold department and what happened on sunday the sixteenth of march two thousand and eight was ben bernanke it slashed interest rates by seventy five basis point unprecedented move to slash interest rates so much and on a sunday and the reason he did this was because of the collapse of bear stearns also gold to just hit the thousand dollar mark the first time ever so here max had an appointment with the bundesbank head of the gold department and the reason for it was we were investigating brown's bottom why he sold their gold at historic lows we wanted to find out why the buddhist bank kept their gold in order to understand the psychology of gordon brown lo and behold there was panic there was chaos and let's turn to the very last clip of that film of what happened when max went into the buddhist bank he was not allowed to speak to the head of gold but he did speak to another exe. active inside the building the fear is that the banking system

itself is comparable. to just a question. to jamie need to be don't know and she know you don't know what's going on to know i mean you don't know what's coming what's coming up the most fascinating thing i learned is that all the gold in germany. he's in new york now since then was the mainstay see central banks around the world been buying gold they have also been printing money the amount of money the central banks have been printing sense that film came out four hundred per cent. many many trillions of dollars yen and euro's been created the total supply of gold around the world during the same period of time is a whopping eight percent well again you know that was before the collapse of lehman brothers before the collapse the near collapse of the global financial system and

in response to that film gap to the gold antitrust action committee said this kaiser's documentary may be sensational forgetting it and the knowledge of it from the german central bank for the first time that germany's gold reserves are actually in the custody of the united states this is a detail the buddhist bank long has denied to all those who have inquired and it's potentially a matter of great controversy in germany this is what gap to wrote and two thousand and nine august two thousand and nine since then of course there's been l'arche all doggedly pursuing this story emailing the bundesbank every single day for the last four years and this turned into a tabloid story building had us blood all covered in germany and then it got up to the congress people senators in their political existence and now we have a situation where they're asking for their gold back here's a number that will be one of the defining numbers of twenty thirteen grams per capita this is the division of total gold held by a country divided by its population number one of the world of switzerland with

about one hundred twenty six grams per capita america's got about twenty five grams per capita and that's of course knowing that the goal is in four dollars was a lot of people argue it's not and germany and the rest of europe and people around the world want to boost their growth and grams per capita number as we enter this currency war which you can look at it this way states that we've gone from the cold war to the gold war yes and now is this gold we're going to go down so you know easily in the united states because of course this is. really a shot across the bow of the u.s. dollar reserve standard so let's look at what the largest bond fund manager in the world says about this this is also on the front page of the financial times mohamed el erian germany's gold move he says quote this unusual and highly visible decision is sure to trigger an explosion of media commentary relating both to motivation and

implications especially since germany joined iran libya and venezuela in making such a move now max we all know what happened to libya we all know what is happening to iran and venezuela this is a remarkable threat essentially oh it is a threat and. this fellow who wants a pimco bill gross of course goes the biggest bond portfolio in the world and this is a continuation of what we're saying for example paul singer who was owed some money from argentina seized one of their ships at sea here pepco is saying. let's you keep buying u.s. treasury bonds expect to happen do you happen to gadhafi expect to happen he would happen to saddam hussein our contacts at the state department america will come and bomb you that's what this fellow go is saying so when did a bong manager have access to the pentagon to go kill the compact competition oh that's the american business model the washington consensus is that we don't want

to compete well just to kill you l. ron help them go to the bone pimp you know who needs that what about capitalism what about competition pepto don't kill your competitors cowardly moron yes but listen they are living in a world in a matrix in which they are the bond kings here they've actually been advised and clients and bill gross has been quite vocal that he himself is buying gold for his own portfolio but that's within the context of a theocracy gold. system in which the u.s. dollar is king when germany does this however it's not just a simple investor protecting their wealth this is a political statement this is an act of war they see that it makes the whole their whole paradigm of investment change it is an act of war and germany is correct to want to repatriate their gold and they should step it up a bit and i think this is the opening shot they should demand not five hundred tons

or six hundred dollars they should demand everything that should be out there aggressively buying gold and people in germany you should be buying gold yourself join the civil liberation army in the global insurrection against banker occupation by silver and gold yourself german and american look at it this way they threaten to take their guns and there's mass panic at the gun store imagine when they say well we're not sure about the us dollar anymore we're going to have to roll it up to a global special drawing right there will be mass panic of gold buying driving up to ten thousand dollars or else my my target which has been a place for ten years so mohamed el erian concludes with this the most likely outcome right now is for germany's decision to have minimum systemic impact but should this be wrong and the decision feel greater suspicion the resulting hit to what remains a multilateral policy cooperation will be problematic for virtually everybody so again he's seeing a breakdown of the global system which is why i think he's not saying like oh as an investor this is a bad decision for germany he's saying wow the entire system in which we pimco

operate and which we are the bond kings in which we are with the guys connected to the u.s. dollar money issuers that system is falling apart and what do we do that's an insurrection against. the bond king was toppled by gold and silver and wiped out all or. there's going to be a scorched earth policy against a paper pushers the paper bugs a scorched earth that means all fiat currencies exterminated and then finally you didn't mention what the. the ordinary person out there should do and i was sent this to be a photo from somebody in sarasota florida and they went to a mexican taco stand and there was a game and if you look at this picture it says silver coins are frequently added to this game the chinese government is urging its one billion citizens to buy silver in order to hedge against inflation and the devaluing of currency should you be lucky enough to win the silver coin in this game save it as it could be easily

worth one hundred dollars in just a few years well in mexico the word for money is silver and that's been true around the world countries around the world mexicans are no fools baby but let's over all right thanks so much thank you max stay tuned for the second i have always speaking to doug casey. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't know i'm sorry is a big picture. decades

. if you had fifty people killing each other in any other country there would be there would be. self-imposed costs from society i will myself and my going to my brother understand. that. my anger and my frustration. got. into the.

most violent gangs in us history. as a stall model kill or be killed with the colors matching the national flag. that this country uses. when it reaches and then it legitimizes the violence they all made in america on the. welcome back to the kaiser report i max kaiser time now to go to washington d.c. and speak with author publisher investor doug casey of casey research is latest book is called totally incorrect first your thoughts on the official statement from the german bund to spank that they will be repatriating all of their gold held in

france and twenty percent of their u.s. held reserves casey it makes all the sense in the world actually. it made sense in the past when the russians were there when the east germans were there to diversify geographically their gold but it serves no useful purpose to store these go there gold with. foreign central banks which actually they have no reason to trust again we've got a move around the world central banks are repatriating galled as part of what some are calling the currency war it appears as though all the central banks printing lots and lots of money and shillings of dollars of fat currency is making the central banks nervous and they right to be nervous yes they should be nervous because the assets of most central banks in the world are the paper currencies of other central banks mainly the federal reserve mainly the us government's paper

money and there's no reason at all why they should trust that so eventually they're going to start trading all that paper for gold. that's what's going to happen because as you're as you're well aware of the russians and the chinese when they're dealing with each other have to use at the moment u.s. dollars the clear through new york this makes no sense at all the indians and the iranians so they're going to cut the u.s. dollar out of the room out of the loop totally in the future ok sound i want to focus on this german repatriation of gold for a second i'm looking at the comments from mohamed el aren who's the head of pimco biggest bond buyers owner in the u.s. he wrote an opinion piece of the f.t. and he likens this act by germany as similar to the behavior of libya iran venezuela now how likely is that we're going to see a serious repercussions against germany in other words doug you have

a private investor who is stepping into the fray here and virtually threatening germany with libya like actions for simply wanting their gold back there's a couple of moving parts here what do you see done. i really don't know what's on the minds of the germans except it seems it impresses me is a very intelligent vein for them to do and i'm sure they're sorry if the americans and their french don't like it but they have to act in their own best interests and it's certainly in their own best interest to have their gold repatriated. to the place where it belongs and as far as whether we're going to have any wars in the future i don't think there's any question about that because as the going gets tough within countries governments always like to redirect the problem to somebody else some nasty foreigners that are hurting us and some of these people actually think that war is good for the economy so yes i'm sure we're going to see more of

that type of thing and maybe not just little sport wars like in afghanistan and what was in iraq real war is where of the u.s. goes to hunt big game which is going to be very very dangerous ok doc cases talk about your book totally incorrect you compare the u.s. the last days of the roman empire is this act by germany a sign of the end of the dollar as a reserve currency and america as a superpower post bretton woods well actually i see a lot of trouble in the future and perhaps this is a straw in the wind because none of these governments trust each other i mean after all one of the main things that governments do is go to war with each other. so that i expect you're going to see more of this type of thing in the future why should the germans be storing their gold with the french in the america. it

makes no sense it makes as much sense as for the americans to store their cold with the germans you know i mean just as every individual ought to have gold and keep it in his old own possession so should these banks well i think went over all ryan is saying here is that germany is declaring an active currency war so as this world war three a sum of positive because. it is sounds a bit rich however with the if you take into consideration the current spate. of economic malaise around the world the and the attempt by govern. and d. base their own currencies as a way to fight this war is this is a too much to say that germany is really stepping up and making this really an act of a currency war dot i don't think there's any question about the fact that the us is headed downhill rapidly one of the relatively few laws that i believe in as the second law of thermodynamics and one of the implications of that is that all things

wind dahlan after time things always revert to the mean and i'm afraid that the us has become corrupt over the years in fact i don't even call it america anymore it used to be america but america was an excellent idea unique idea but now that geographical area of north america is just the u.s. and sure it's going downhill it's becoming highly taxed highly regulated. very corrupt very constipated it's an warlike so that. there's not much to distinguish the u.s. from any of the other two hundred nation states in the world anymore it's a real pity. case even talking about gold for a number of years you're known for this around the world and these views of yours and others at first were not really embraced because of the what i would call the paper lobby or the paper pushers but now we see

a sea change with the actions of germany others to repatriate called excited we had something very recently done casey which i found remarkable there was a push in america for a platinum coin which would not be made of platinum of course or have a very minimal amount of platinum as a way to fix this debt budget the debt ceiling but it's also at the same time there seems to be schizophrenia because people don't like the idea of a precious metal like gold being back in the currency but they somehow like the idea of a fan a fantasy platinum coin fixing their debt see. problem is this gets a frantic is it madness or does this tell you yes it's actually stupidity max and i'm not saying that mr bernanke and whoever it was a came up with this ridiculous idea has a low i.q. that's not the case i'm defining stupidity as an unwitting tendency to self-destruction and. the idea of creating

a trillion dollar coin is really to get around the debt limits things like that which are all a charade anyway what's happening is that the u.s. government is spending well it depends on how you do your college thing with accrual accounting or cash accounting but they're running deficits of between a trillion and a half for a five trillion dollars per year if you use a cruel accounting. so they're going to be printing up lots of money and whether they do it by creating trillion dollar koreans. or not it's academic really they're going to destroy the remaining value of the u.s. currency and it's going to happen quickly at this point not gradually as it has since one thousand and thirteen when the fed was created by not done casey let's move over to another area that i say that you're you know well known for i've been on your mailing list for probably more than a decade so i'm aware of your your your ideas here pertaining to your thoughts on

argentina and the idea that you are you've encouraged people to come to argentina and community in argentina too i don't want to put too much of a spin on this but i'll say it's kind of a libertarian values embraced in bye-bye community and even talking about this for a while recently we have people in mimicking you doug if i can say that you got glenn back you want to start a new community in texas based on libertarian values you got the koch brothers you want to take over an island in detroit and create a new society be. based on libertarian values my first my first question is. how's that going out of this community in argentina going back it's actually going fantastically well and i don't say that as a promoter. i think that astounds me at a coffee shop today is. probably in fact certainly the best development in the world and cut in for a second but then just cut in numbers i'm sure it's

a lovely place to be but the idea that you there is so much there's a split ideologically and it economically in the united states in terms of what the government should be doing a say in pro-capitalist agenda and folks are seeming to say you know we want to see their mimicking iran and the idea of the galt's gulch the idea of atlas shrugged and said we're going to walk away from the table does your community embrace that idea and is that what we're seeing of people just saying we're shrugging we're we're walking away we don't want to play any more your thoughts you know there's certainly an element of that but the difference between what we're doing and what some others are doing is that we think it's important to diversify your assets and your lifestyle internationally so that everything isn't in the bailiwick of one government because when you live in the country where you have a nationality where you have your business that government will treat you as

a milk treat you as a possession of there is so this is why it's good to diversify into a different political entity. where you'll be treated better you'll be treated as a rich tourist in effect cultivated so i think it's very nice with these other folks are doing but i question the wisdom of trying to do it within the united states for americans but we have we have people from twenty eight different countries that have joined us down there ok so you're saying really got to be hedged about what's going on in the u.s. and the idea of creating something within the u.s. you've actually not as yourself but also it's going to be self-defeating for these people i think that's an interesting point that people need to take on board now on the subject of markets there's there's a branch of i guess you could call it a branch of libertarianism which varies toward what you what some call. and narco capitalism where it where you have no rules at all there's a belief that the markets are entirely self correcting it and we only have about

thirty seconds left what are your thoughts on this i actually think that is the correct way to for a society to be run look the government as an entity is pure coercion there's no voluntourism is pure force that comes out of the barrel of a gun as mollett a song said so if you're going to have a government it should just defend you an army thrower from from threats from abroad the police for domestic criminals and a court system allowing you to adjudicate disputes without resorting to force and the government should do nothing else besides that all right well done case i'd love to speak with you some more on this market correction but unfortunately we're out of time to say goodbye but thanks so much for being on the kaiser report max a pleasure thank you all right and that's going to do it for this edition of the kaiserin for with me max kaiser and stacy herbert i'd like to thank my guests doug casey of casey research if you'd like to contact us please tweet us at kaiser

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